Industry - November 2008

In November 2008, seasonally adjusted industrial production decreased by 9.2%, compared to October 2008. Industrial production decreased by 17.4%, year-on-year. Sales from industrial activity at constant prices decreased by 18.5%, year-on-year. The value of industrial new orders decreased by 30.2%, year-on-year.
Seasonally adjusted industrial production in November 2008 was down by 9.2%, month-on-month. The trend dropped by 9.2% (Table 6).
The year-on-year index of industrial production reached 82.6% in November 2008 (87.0%, working days adjusted). There were three working days less in November 2008 compared to November 2007. Seasonally adjusted index (including WDA) was 83.9%.

A decrease of industrial production was most affected by 'manufacture of transport equipment' (-30.3%, contribution to the drop of industry in total -6.9 percentage points, see Table 5). Industrial production dropped also in 'manufacture of basic metals and fabricated metal products' (-23.4%, contribution -2.4 p.p.) and 'manufacture of electrical and optical equipment' (-9.9%, contribution -2.0 p.p.).

The growth of industrial production was recorded only in 'manufacture of coke, refined petroleum products' (+33.7%, contribution to the growth of industry in total 0.9 percentage points). Results in 'manufacture of coke, refined petroleum products' were affected by extremely low comparative base in previous year (standstill of production equipment).

In November 2008, production increased only in main industrial grouping 'energy' (+0.4%). A decrease was recorded in: 'capital goods' (-24.7%), 'consumer durables' (-19.4%), 'intermediate goods' (-15.9%) and 'consumer non-durables' (-12.0%).

Revenues from industrial activity at constant prices dropped by 18.5%, y-o-y (-18.0% at current prices), WDA they decreased by 14.3%, SA by 17.5%. The biggest drop of sales from industrial activity was contributed to by 'manufacture of transport equipment' (-30.3%, contribution to the drop of industry in total -7.1 percentage points), 'manufacture basic metals and fabricated metal products' (-22.6%, contribution -2.2 p.p.) and 'manufacture of electrical and optical equipment' (-10.5%, contribution -2.0 p.p.). The increase of revenues from industrial activity was contributed to only by 'manufacture of coke, refined petroleum products' (+16.8%, contribution to the growth of industry in total 0.3 percentage points).

Direct export revenues of industrial enterprises were 20.0% down at constant prices, (-22.6% at current prices). Their contribution to total revenues of industrial enterprises stood at 46.5% (current prices).

Revenues from industrial activity of foreign-controlled enterprises decreased by 20.3% at constant prices (-20.1% at current prices). Their contribution to total revenues (at current prices) stood at 58.2%. Direct export sales of industrial foreign-controlled enterprises decreased by 21.0% at constant prices (-23.5% at current prices) and made up 74.9% of total revenues of these enterprises (at current prices).

The average number of persons employed in industry decreased in November 2008 by 41.8 thousand persons, y-o-y (i.e. -3.5%). Employment decreased most in 'manufacture of textiles and textile products' (-16.6%), 'manufacture of leather and leather products' (-10.1%), 'manufacturing n.e.c.' (-8.5%), 'manufacture of other non-metallic mineral products' (-7.9%),), 'manufacture of wood and wood products' (-7.4%) and in 'electricity, gas and water supply' (-7.2%).

The average monthly nominal wage in November 2008 amounted to CZK 24,843 and rose by 2.4%, y-o-y. The average hourly wage increased by 14.7% and stood at CZK 183.0. Labour productivity in industry decreased by 14.6% and hourly labour productivity was by 4.3% higher. These results were affected by lower number of working days (-3 days). The number of hours worked dropped by 13.9%.

Industrial new orders in selected CZ-NACE activities concluded in November 2008 reached the value of CZK 120.4 billion at current prices, of which non-domestic industrial new orders made up CZK 72.3 billion. The y-o-y index of industrial new orders in total stood at 69.8%, the index of non-domestic industrial new orders was 66.2%. Non-domestic industrial new orders dropped most in ‘manufacture of motor vehicles, trailers and semi-trailers' (-35.6%, contribution -11.4 p.p.), 'manufacture of machinery and equipment' (-39.2%, contribution -6.0 p.p.) and 'manufacture of electrical machinery and apparatus' (-36.8%, contribution -3.9 p.p.). Non-domestic industrial new orders rose only in 'manufacture of other transport equipment' (+7.9%, contribution +0.1 p.p.). The value of cancelled new orders increased.
According to Eurostat News Release, working day adjusted industrial production in the EU27 decreased by 5.0% in October 2008 compared to October 2007. Among the EU27 member states, for which the data were available, the highest decreases were registered in Spain (-12.8%), Estonia (-11.0%) and Ireland (-3.9%). A decrease was reported in Germany (-3.8%). The increase was recorded only in Slovakia and Poland (just +0.1%).

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Note
Contact: Jan Ernest, tel: (+420) 274054188, E-mail: jan.ernest@csu.gov.cz
Data source: CZSO direct survey in enterprises with 20+ employees
End of data collection: 7 January 2009
End of data processing: 9 January 2009
Related publication: 8001-08 Industry of the Czech Republic